Early this morning, the market experienced a strong rally, with Bitcoin reaching a high of $94,478, and Ethereum surging to around $3,383. This upward movement was supported by increased trading volume, indicating a return of bullish momentum. Factors driving the rally include optimistic expectations about Federal Reserve policies and technical breakout signals. However, after the rapid surge, short-term technical indicators have entered overbought territory. This suggests that the market may need a brief correction or consolidation to digest the gains, so chasing the highs at current levels is not advisable.

Bitcoin currently shows a bullish alignment on the technical front. The 4-hour Bollinger Bands are opening upward, but the hourly RSI and other indicators indicate overbought conditions, signaling a need for technical correction.
Long position strategy: A more conservative approach is to wait for a pullback to the support zone around $93,600 - $93,800 before entering a light long position. If the pullback deepens, consider scaling into positions near the strong support zone of $92,800 - $93,000. Stop-loss can be set below $92,500, with target levels at $94,500 and $95,000.
Key breakout: If the price consolidates and then breaks out with volume above the Asian session high of $94,500, it could open up further upside potential toward $95,000 and even $96,000.
Ethereum's movement is correlated with Bitcoin and remains strong, but its 4-hour technical indicators also show overbought signals, indicating short-term correction pressure.
Long position strategy: The core idea is to buy on pullbacks. Look for opportunities when the price retraces to support zones around $3,230 - $3,250. A more conservative entry point is in the $3,180 - $3,200 range. Set stop-loss below $3,150, with targets at $3,350 - $3,380.
For short positions: Aggressive and experienced traders can consider a light short if the price hits resistance around $3,380 - $3,430 and shows clear signs of slowing (such as long upper shadows). Strictly set stop-loss at $30 - $50 above entry, with targets near $3,300.
💎 Overall, after a strong breakout, the short-term trend remains bullish, but caution is needed for technical corrections. The main approach is to favor buying on dips and avoid chasing highs. Patience in waiting for the price to return to key support levels before entering is a more prudent strategy.
Strict risk management: Operate with small positions and set strict take-profit and stop-loss levels.
In low-liquidity environments, preventing risks from “pinning” moves is a top priority.
Monitor variables: Pay close attention to the capital flow data of Bitcoin spot ETFs and broader macroeconomic indicators (such as clues from Federal Reserve policies).